Yelp Delivers a Five-Star Quarter, With Revenue Up 67 Percent
Yelp, the online review site that hosts opinions on everything from restaurants to plumbers, has surprised analysts by delivering a smaller-than-expected net loss per share and a sizable jump in revenues.
In the second quarter, the company reported revenue of $32.7 million, up 67 percent from the same quarter a year earlier. The only thing that could have been better was the company’s net loss, which totaled $2 million, or three cents a share, compared to a loss of $1.2 million, or eight cents a share.
Analysts had been forecasting revenues of $30.7 million and a six cent per-share loss.
In after-hours trading, the company’s stock was up nearly 14 percent, or $2.58 a share, to trade at $21.40. The company went public in March, selling shares at $15 a pop.
In a canned quote, CEO Jeremy Stoppelman credited the positive results to a jump in usage across Yelp’s 90 markets. The company’s average monthly unique visitors are up 54 percent year over year to more than 30 million. He said Yelp is “seeing an increase in our consumer engagement, especially on mobile, where their connection to local businesses is enhanced by the location-based capabilities of their mobile devices.”
Yelp is also providing guidance for its third quarter for the first time, and is raising its full year 2012 guidance:
- For the third quarter of 2012, net revenue is expected to be in the range of $34.5 million to $35.5 million. Adjusted EBITDA is expected to be in the range of $750,000 to $1.25 million.
- For the full year of 2012, net revenue is expected to be in the range of $135 million to $136 million, representing growth of 62 percent to 63 percent compared to the full year of 2011. Adjusted EBITDA is expected to be in the range of $3 million to $4 million.